Oil Price

Saturday, January 17, 2015

Saudi Aramco is well prepared to face the steep drop in oil prices in the short and medium term, and it has made some adjustments in light of the price fall, according to CEO Khalid A. Al-Falih.Al-Falih said in a memo published in the company’s internal Arabic weekly magazineQafilah that he understands that the current market situation has created ambiguity among company employees and their families about the company's ability to cope with sharply lower oil prices. “That’s why I am here confirming to you that we have strengthened our position when oil prices were high, as we expected this scenario to happen,” Al-Falih said in the memo. “We are able to maintain our long-term commitments, and we will continue our work with high flexibility, efficiency, and wisdom.”

The current situation offers an opportunity for Saudi Aramco, he said. “For example, amid these circumstances, we will be able to execute our projects at lower prices because others will be obliged to postpone their projects. This will lead service providers to slash their prices in order to get work,” he said.Al-Falih said he expects many oil and gas companies will lay off employees, which may offer an opportunity for Saudi Aramco. “We will be able to hire talented people and experts we need to keep our investments going on,” he said.Meanwhile, Al-Falih said that his company made eight discoveries in 2014, which will help boost the company’s overall reserves. “In addition, our gas production capacity has hit historic levels at 8 billion cubic feet per day,” he said.By: AbdelghaniHenni is the Middle East Editor for the Journal of Petroleum Technology

Friday, January 16, 2015

HOUSTON – Oil field giant Schlumberger said Thursday it will cut approximately 9,000 employees – around 7.5 percent of its workforce around the globe – as both petroleum prices and oil-company spending nosedive.

Schlumberger’s profits fell 82 percent in the fourth quarter as it wrote down $1.7 billion in assets. It said it recorded a $296 million charge related to its headcount reduction.

Robert Drummond, President of Schlumberger North America (left) and Jeremy Aumaugher, South Division Operations Manager (Tom Reel/ San Antonio Express-News)

“It’s very unfortunate, but this is definitely not going to be the last headcount reduction in 2015 in the energy space,” said Rob Desai, an analyst with Edward Jones. “The goal is to position the company to come out of this downturn stronger.”

The oil-tool maker banked $302 million, or 23 cents a share, in net income in the October-December period, compared to $1.66 billion, or $1.26 a share, in the same period in 2013. Its revenues were up from $11.9 billion to $12.6 billion.

The job reductions began in the fourth quarter and are expected to be completed later this year, Schlumberger spokesman Stephen Harris said in an email.

“These global reductions encompass many geographic regions in which we operate, including the Houston area,” Harris said. The company is “not releasing any details on exactly how many and where these reductions are coming from, however.”The company took an $800 million impairment charge when it retired some of the seismic vessels from its fleet. Schlumberger also took a $472 million devaluation charge on the devaluation of Venezuela’s currency against the U.S. dollar. And it saw $199 million impairment charge as the value of an investment in the Eagle Ford Shale sunk.Traders reversed a large portion of Wednesday’s rally in crude oil. Futures for international Brent crude fell $1.02 to $47.67 per barrel on London’s ICE Futures Europe market. U.S. benchmark West Texas Intermediate fell $2.23 to $46.25 a barrel on the New York Mercantile Exchange.

Sunday, April 13, 2014

There are four basic well profiles considered while planning a directional well. Here we are only going to have basic preview of these profiles and the design considerations will be covered in the coming posts.

TYPE I WELLSType I wells are made up of a kick off point, one buildup section and a tangent section up to the target. They are also called Build and Hold Trajectory or L Profile Wells (as it is L - shaped). These wells are drilled vertically from the surface to kick-off point at a relatively shallow depth. From the kick off point, the well is steadily and smoothly deflected until a maximum angle and the desired direction are achieved (BUILD). Then, if desired, casing is run and cemented. Further, the established angle and direction are maintained (HOLD) while drilling upto the target depth.

Usually this method is employed when drilling shallow wells with single producing zones.

TYPE II WELLSType II wells are made up of a vertical section, a kick- off point, a build-up section, a tangent section, a drop-off section and a hold section upto target. They are also called S Profile Wells (as they are S - shaped). Like Type I Wells, the Type II wells are drilled vertically from the surface to the kick-off point at a relatively shallow depth. From the kick off point, the well is steadily and smoothly deflected until a maximum angle and the desired direction are achieved (BUILD). The angle and direction are maintained until a specified depth and horizontal departure has been reached (HOLD). Then, the angle is steadily and smoothly dropped (DROP) until the well is near vertical. Finally the angle and direction is maintained till we reach the target depth. A disadvantage of the Type II is that it will generate more torque and drag for the same horizontal departure.Usually this method is employed to hit multiple targets or to avoid faulted region or to minimize the inclination in the zone which will be fractured during completion or for sidetracking.

TYPE III WELLSType III wells are made up of a vertical section, a deep kick off and a build up to target. They are also called Deep Kick off wells or J Profile wells (as they are J - shaped). They are similar to the Type I well except the kickoff point is at a deeper depth. The well is deflected at the kickoff point, and inclination is continually built through the target interval (BUILD). The inclinations are usually high and the horizontal departure low.This type of well is generally used for multiple sand zones, fault drilling, salt dome drilling, and stratigraphic tests. It is not used very often.

TYPE IV WELLSType IV wells are made up of anyone of the above profiles plus a horizontal section within the reservoir. They are also called Horizontal wells or Horizontal Directional Wells. A horizontal well is a well which can have any one of the above profiles plus a horizontal section within the reservoir. The horizontal section is usually drilled at 90 degrees and therefore the extra maths involved is quite simple as we only need the measured length of the horizontal section to calculate the total well departure and total measured depth. The hole total TVD usually remains the same as the TVD of the well at the start of the horizontal section. However, if the horizontal section is not drilled at 90 degrees or there are dip variations within the reservoir, then the total hole TVD will be the sum of the TVD of the horizontal section and the TVD of the rest of the well.Horizontal drilling is used to produce thin oil zones with water or gas coning problems, used to increase productivity from low permeability reservoirs by increasing the amount of formation exposed to the wellbore, used to maximize production from reservoirs which are not being efficiently drained by vertical wells and to connect the portions of the reservoir that are productive.

Tuesday, April 8, 2014

This Log Quality Control Reference Manual (LQCRM) is the third edition of the log quality control specifications used by Schlumberger. It concisely provides information for the acquisition of high-quality data at the wellsite and its delivery within defined standards. The LQCRM also facilitates the validation of Schlumberger wireline logs at the wellsite or in the office.

Saturday, April 5, 2014

Companies in the UK oil and gas sector expect to create up to 39,000 jobs over the next two years.

A survey of 100 companies, commissioned by the Bank of Scotland, found expectations of employment growth had increased since last year.A clear majority (69%) of executives in the companies were optimistic about their growth prospects in 2014/2015.A total of 38% of those responding said a shortage of skilled workers would be their greatest challenge.International expansion was cited as a priority by 64% of those taking part. Key areas for investment were Africa, North America and the Middle East.

Half of the companies said they were already planning to use their expertise by investing abroad

'Expand internationally'

The survey found 46% of companies were already planning further growth in foreign markets over the next 24 months.

The research was carried out by BDRC Continental and companies were chosen to reflect a range of size, location and service type.

A similar study carried out last year indicated companies in the sector would recruit an additional 34,000 people over two years.

Bank of Scotland commercial area director Stuart White, said: "The findings of this report are excellent news for the economy, demonstrating the employment-generating nature of the oil and gas industry now and in the future.

"With most of the UK's oil and gas firms clustered in Aberdeen and the north-east, Scotland should reap the largest share of these new jobs, however other parts of the UK will benefit from expansion plans.

"The report also highlights the growing challenges posed by the lack of a skilled workforce."

Mr White said new specialist apprenticeship schemes could help address the shortfall.

"The results also demonstrate the global nature of the industry as more firms look to expand internationally and tap into the markets with the largest levels of recoverable reserves," he explained.

"With 44% of income already generated internationally, this is not a new trend, and reflects the reach UK firms have as the industry benefits from the expertise gained in the challenging North Sea environment."

'Key strength'

A Scottish government spokesman said: "This is an increase of 5,000 on the estimate made only last year.

"It is also very encouraging to see a strengthening of the international expansion of these companies, and this is a trend which is expected to continue.

"The skills and knowledge developed in Scotland as a result of the development of the North Sea are a key strength for Scotland.

"We are committed to working with the oil and gas sector to maintain competitiveness, facilitate the transfer of skills and knowledge to other sectors and utilise Scottish-based skills in world markets."

The Labour MP for Aberdeen North, Frank Doran, said that, while the report was good news for the industry and Scotland, there were long-term issues facing the sector, including price volatility.

Speaking on BBC Radio's Good Morning Scotland programme, he questioned whether an independent Scottish government would have the expertise and resources to run the industry efficiently.

He added: "I don't know where the Scottish government is going to get the talent, particularly given the wages and the salaries which are paid in the oil and gas industry, which are way beyond what the public sector is prepared to pay,

"That is one of the unanswered questions - where are the civil servants going to come from?"

The Petroleum Engineering Handbook has long been recognized as a valuable, comprehensive reference book that offers practical day-to-day applications for students and experienced engineering professionals alike. This new edition, the first since 1987, has been greatly expanded and consists of seven volumes.

Drilling technology has evolved substantially over the years, from slide rules and hand calculations to advanced computer science and numerical analysis. This volume, the first drilling content to be included in the Petroleum Engineering Handbook, is intended to provide a snapshot of the drilling state of the art at the beginning of the 21st century.

Thursday, March 13, 2014

This new edition of the Standard Handbook of Petroleum and Natural Gas Engineering provides you with the best, state-of-the-art coverage for every aspect of petroleum and natural gas engineering. With thousands of illustrations and 1,600 information-packed pages, this text is a handy and valuable reference.Written by over a dozen leading industry experts and academics, the Standard Handbook of Petroleum and Natural Gas Engineering provides the best, most comprehensive source of petroleum engineering information available. Now in an easy-to-use single volume format, this classic is one of the true "must haves" in any petroleum or natural gas engineer's library.* A classic for the oil and gas industry for over 65 years!* A comprehensive source for the newest developments, advances, and procedures in the petrochemical industry, covering everything from drilling and production to the economics of the oil patch.* Everything you need - all the facts, data, equipment, performance, and principles of petroleum engineering, information not found anywhere else.* A desktop reference for all kinds of calculations, tables, and equations that engineers need on the rig or in the office.* A time and money saver on procedural and equipment alternatives, application techniques, and new approaches to problems.